Stocks drop early in trading, pulling S&P 500 below record | Your money
Shares fell early in Wall Street on Monday in a slow start to the week as investors await the Federal Reserve’s latest take on inflation.
The S&P 500 fell 0.2% at 10:14 a.m. Eastern time. The Dow Jones Industrial Average lost 151 points, or 0.4%, to 34,328 and the Nasdaq was up 0.2%.
The benchmark S&P 500 is just below its last record set on Friday. He has also just achieved his third consecutive weekly gain. Trade has been choppy as investors assess the economic recovery and the impact of rising inflation on its path and the Fed’s next move.
Banks, health care and industrial companies recorded the biggest losses. Energy companies held up better than the rest of the market as crude oil prices climbed more than 1%. Marathon Oil increased 2.1%.
The Fed is meeting this week and will issue a statement on Wednesday. Investors fear that the Fed will ease its bond purchases and other stimulus measures as the economy recovers. No policy changes are expected in the immediate future, but comments about a policy change could shake up an already nervous market.
Fed officials have maintained that any rise in inflation will be temporary as the economy recovers.
Lordstown Engines fell 20% after the CEO and CFO resigned as problems mount for the startup electric truck maker.
Novavax rose 1.1% after the vaccine maker said its COVID-19 vaccine was highly effective against the disease and also protected against variants in a large study in the United States and Mexico.
Bond prices have fallen. The yield on the 10-year Treasury bill rose to 1.48% from 1.46% on Friday night.
European markets were mostly higher. Several markets in Asia have been closed for holidays.
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